Whilst LTE is spreading across the globe, the question remains how to best leverage the speed that LTE brings to create value for customers and generate more revenue. This guide presents recent operators’ innovations in this area, with examples from leading operators including T-Mobile, Orange, Swisscom, Optus, A1 Telekom Austria, 3 and EE.

1. Packaging LTE
Speed to Drive
Revenue:
Top Use Cases and
Operator Examples

2. Introduction
Whilst LTE is spreading across the globe, the question remains how to
best leverage the speed and capacity that LTE brings to create value for
customers and generate more revenue. Today we count 222 commercial
LTE operators in 83 countries (GSA Evolution to LTE report: October 17,
2013). Some operators like 3 UK intend to launch LTE at no extra cost to
customers, whereas others are charging a premium for LTE speeds. In any
case, most operators are leveraging LTE speed to promote and add value to
their services.
This guide looks at how different operators are packaging LTE speeds to
differentiate and drive revenue, showing real-life examples and innovative
approaches. Use cases and operator examples include:
• Unlimited data with speed tiers
• Data roaming speed packaging
• Using speed caps to differentiate
• Upselling high speed
• Time of the day speed
• Venue speed boost and throttling
• Strategies to enforce data limits
This guide also discusses the role of policy management in enabling these
business models as well as the role of on-device customer engagement in
driving loyalty and revenue.
Data source: Mobile Evolution Roadmap, Wireless Intelligence, 2009
2 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

3. 3
Tiered Pricing and LTE Speed
Tiered pricing was used on 3G as a smart way to manage capacity and package
value by creating differentiated propositions, usually based on varying data
volumes. Tiered pricing enables operators to capture more revenue from
customers ready to pay for premium services and still generate revenue from
(and retain) those customers with lower requirements. Overall it creates a
win-win situation where the right resources are allocated to the right need at
the right price.
With LTE, tiered pricing is evolving from volume-based tiers to speed-based
tiers with data packages based on varying speed entitlements, but often
a combination of both. (see KPN example) More and more operators are
using this approach to package speed as the main promoted value of LTE.
It enables them to create differentiated packages where speed is used to
create perceptible value – and encourage customers to upgrade to higher
tiers and 3G customers to switch to LTE for a premium. A recent survey*
showed that almost 90% of operators are offering or wish to offer speed
tiers but not all currently have the capability to do so.
Implementing speed-base packages requires policy control and different
LTE operators have taken interesting approaches as highlighted in this
guidebook.
Top Use Cases and Operator Examples
* Openet research report - Charging & Billing for the Digital Economy, 2013
Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

4. Unlimited Data with Speed Tiers...
There have been a lot of discussions around unlimited data offers, with many
analysts arguing that they were unsustainable and that operators needed to
create more differentiated and value-based offers. Swisscom has actually
been using speed as the differentiating value whilst offering unlimited data
on LTE - with its Infinity tariffs launched in July 2012. Based on the fact that
the value of speed is easier for customers to grasp than data volumes, this
approach gives customers the worry-free “unlimited data” that they like,
whilst still differentiating to optimize revenue. As a result, Swisscom has
seen its overall ARPU grow, although it initially declined its market share is
increasingly growing.
source: Swisscom Presentation HY 2013, 07.08.2013
4 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

5. 5
… and Speed Throttling
3 Austria follows the same strategy as Swisscom with
its Hello and Hello Europe tariffs that include unlimited
data with differentiated speeds and mobile TV channels.
However, whilst offering unlimited data, both Swisscom
and 3 Austria restrict the speed to 64Kbit/s once a certain
amount of data is consumed; 3 Austria clearly highlights
this to its customers and shows for each tariff the full speed data volume in
addition to the maximum download and upload speeds. However, 3 Austria
also offers a premium package with unlimited and unthrottled data speed.
Top Use Cases and Operator Examples
Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

6. Unlimited Data Roaming at Low Speed - with High Speed Upsell
In terms of roaming, T-Mobile US offers unlimited data while roaming as
part of its Simple Choice plans; however the speed is limited to 128Kbit/s ,
the aim being to upsell “speed packs” when higher speed is required. The
plans are subject to fair usage rules and also include unlimited SMS while
roaming. This approach is very attractive to customers whilst enabling the
company to continue to drive roaming revenues by upselling speed.
This may be an interesting approach in the context of Europe where the
abolition of roaming charges through regulation is under discussion.
Temporary speed boost offers may also bring additional revenue from
travelers by allowing them to quickly download movies or games to enjoy
during their trips.
6 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

7. 7
Upselling High Speed Add-Ons
In a recent survey*, about half of operators saw add-ons as an effective
strategy to increase ARPU. LTE has brought the opportunity for operators
to upsell high-speed add-ons to supplement a base package or temporary
speed boosts, enabling customers to purchase higher speeds as required.
For example, A1 Telekom Austria upsells high speed options to its
customers in addition to basic packages that incorporate lower speeds.
Another example is Pelephone in Israel who has been upselling a “double
speed” add-on (2-4 Euros, free for half a year); this has resulted in a
80% take up, with 30-50% of the customers expected to stay after
the promotional period (Source: Mr. Gil Sharon, CEO & President, 2012,
November, Broadband Traffic Management)
Upselling Time of Day Speed & Unlimited Data
A1Telekom Austria offers a data add-on (Eur 8.25) to its business
customers, with night time access (22:00-08:00) to unlimited data, at full
speed as per their base package. This is an interesting approach to managing
speed and network resources whilst offering the always popular “unlimited”
to create a new data revenue stream.
Top Use Cases and Operator Examples
* Openet research report - Charging & Billing for the Digital Economy, 2013
Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples
Upselling High Speed

8. Using Speed Caps to Differentiate
Speed Cap for Non-Premium Customers
EE, the first LTE operator in the UK applies a speed cap of
30mbps to all new customers not on its premium post-pay
package “4GEE Extra” while premium customers can enjoy
speeds of up to 150 mbps. Their packages also include unlimited
minutes and texts as well as free roaming calls and texts to
selected countries and includes the Deezer music service.
Speed Cap to Enhance the Value of Post-paid
Telia, the world’s first LTE operator offers its 4G
post-paid “Mobil Komplett” customers a speed up
to 100 Mbit/s whilst all its 4G pre-paid customers are
capped to 20 Mbit/s. Telia’s Mobil Komplett plan also comes
with data volume tiers and shared data allowing customers
to use up to 7 mobile/tablets on the same subscription. The
plan includes unlimited calls, SMS and MMS.
Speed Cap to Differentiate with a Sub-Brand
Orange France launched its low cost sub-brand Sosh which
uses speed caps to differentiate from the main brand. Whilst
Orange customers can enjoy LTE speeds up to 150 Mbit/s,
Sosh offers a maximum of 42Mbit/s with its best package.
8 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

9. Venue Speed Boost and Throttling
9
Top Use Cases and Operator Examples
Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples
Operators can use venue throttling to ensure consistent data experience
for all or a subset of mobile subscribers in a particular location. It allows
operators to throttle up or down subscribers’ speeds at a specific site, based
on their existing profile. Using location based network probes the operator
can anticipate data congestion and either throttle or boost subscribers’ data
speed, based on network utilization.
Venue throttling is relevant in the context of large scale events where a
network operator may have over 50,000 subscribers in one area, potentially
leading to a poor data experience for all if not managed appropriately.
Diagram: Solution Architecture for Venue Speed Boost and Throttling

10. Enforcing Data Limits: Throttle or Not... Or Notify & Upsell?
When it comes to enforcing data limits, the question is to strike the right
balance between customer experience and revenue generation goals;
different operators have adopted different approaches:
T-Mobile US for instance offers high speed data volume tiers with its
“Simple Choice” plans and then throttles to 2G data speed once the high
speed data allowance is exceeded, until the next billing cycle. In effect, this
approach is equivalent to offering unlimited data to customers at differing
speeds. Orange France also throttles the speed when the data allowance is
exceeded. Optus in Canada automatically moves customers to the next tier
for the rest of the month. AT&T sends data usage alerts to its customers
and then charges when they go over their allowance. Vodafone UK also
applies extra charges.
A recent survey (Strategy Analytics Mobile Phone Owner Survey, UK results,
Aug 2012) showed that half of UK mobile phone users would like to receive
notification before they reach their limits. Operators can also then take
the opportunity to upsell a data package. By doing so, one operator
revealed that they achieved a 20% sales conversion. This is also the
approach that EE UK has taken.
EE approach to enforcing data limits:
10 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

11. The Role of On-device Interaction and Purchase: Driving Loyalty and Spend
11
Customers crave choice, flexibility and control – providing them these three
things is the best way to keep them loyal and happy to spend. In terms of
choice however, there is always a risk that with too many offers and options
available, customers may in fact get confused. Operators can avoid this
and actually increase sales conversion rates by bringing customers more
relevant choices with context-aware offers sent directly to their devices
in real-time. The context can relate to personal, usage, time or location
information. An example could be a smartphone user with no data plan
trying to access Facebook, this could then trigger in real time a data bundle
offer that provides unlimited access to Facebook for €5 a month.
Further giving customers the flexibility to “buy now” on the device and have
the service delivered in real-time anywhere is viewed by 74% of operators
as the most successful strategy to build loyalty and increase ARPU*. Such
level of customer engagement combined with real-time usage visibility right
on the device – through dashboards and alerts - creates unprecedented
customer satisfaction, driving loyalty and spend.
This requires the extension of PCC to the device, using a secure interaction
gateway between the policy & charging control network elements and an
application on the device.
Top Use Cases and Operator Examples
Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples
My Plan
Up-sell
Notification
Purchase
* Openet research report - Charging & Billing for the Digital Economy, 2013

12. The Role of Policy Control: Openet Speed Tier
Openet’s speed tier solution allows operators to successfully segment their
market to differentiate the service experience and increase data revenues.
The solution is based on entitlements set within the Subscriber Profile
Repository (SPR) which forms part of Openet’s market leading Policy
Manager product. When a subscriber begins a data session it triggers a
message to Openet Policy Manager. Policy Manager reviews the SPR for
the customer’s entitlements. Openet Policy Manager enforces the rules
through the Enforcement Point (a network packet gateway or deep packet
inspection node).
SPR
12 Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples

13. 13
Top Use Cases and Operator Examples
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Packaging LTE Speed to Drive Revenue: Top Use Cases and Operator Examples
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